M42
Renting Vs Mortgage
October 30 2015
Comments
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RHP User
10 years ago
Your asking financial advice here ?Ok, see a professional adviser or 3 after you speak to your accountant. There are so many variables mate, depending on your current position, medium and long term goals etc. But one thing for sure is you do need a financial plan of some description wether it involves real estate or not.That will be $500 dollars please and 0.03% of all future earnings thanks.
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RHP User
10 years ago
Why not? I have only rented, any money I manage to save goes on holidays at the moment, buying a house has not been on my list of priorities maybe future me Will - Posted from rhpmobile
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RHP User
10 years ago
ha ha - have been to a few banks etc for advice feel the vibe is the bank is pushing for something for them hence why i thought a light discussion on here - can exchange ideas - aka "bareboob investor"
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225Special
10 years ago
We have a mortgage, if you own your house you can do what you want with it, paint it pink with purple polka dots..lolBut if anything goes wrong you have to pay for it yourself, eg. hot water system shits itself (always great to come home to that). You also have rates and water to pay for. Also if you haven't got a fixed rate home loan interest rates will change your payments. With renting you know what you are up for every week money wise, but have had friends been very happy in a place only to be told that it is going on the market to be sold.
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RHP User
10 years ago
Quoting 'Strallberrie' ha ha - have been to a few banks etc for advice feel the vibe is the bank is pushing for something for them hence why i thought a light discussion on here - can exchange ideas - aka "bareboob investor" Your dead right, they usually are, but then so are many sources of advice like investment advisors and even accountants so get as wide a range as you can, ha so even here, why not.Property, shares, cash are all pretty flat at the moment, @32 your pretty young you might want to take a bit of extra risk and look at venture capital.Whatever get lots of advice from all over and do your homework on the downsides and the upsides and say your prayers to Our Lady of Perpetual Cashflow.
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RHP User
10 years ago
I checked your profile to see where you live... to get a rough idea on property price indicators for that area. In short.... yes. And No. Did you think it would be that easy??) Its like this.... * You have to live somewhere, so rent or mortgage is a standard living expense youre going to have regardless (unless living with parents). So the question/equation of critical importance is.....: - * will the input ($mortgage payments of say $15-25k each year) + (average annual growth in equity inclusive of value of any improvements) - (interest, maintenance and rates, cost of those improvements etc) be of more benefit than the cash you can save by just renting.... or less. Only you can that question honestly However for most people, buying makes sense as a mortgage payment is in a way an enforced saving, in the equity of the home. It just costs a lot of interest to make that equity grow over (say) 30 years. (IE, a 500k home over 30 years at 5%, really cost you $965,613 (not including rates, etc) DG
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RHP User
10 years ago
A mortgage broker,he was a genius xxFreya
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RHP User
10 years ago
A swingers and singles site AND wankers site. Find your financial advise elsewhere. Honestly. The longer I stay here..... - Posted from rhpmobile
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RHP User
10 years ago
Previously have held multiple land titles, separately though. Never been a tax leaner re IPs - NG. Whatever works for you at the time. There will be a correction in the market though, even Freddie can see that! And it is 1 area where experience is what you get after you need it. Good topic OP. Shame there is not a general discussion board/forum here @ RHP.
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RHP User
10 years ago
Rent is paying off someone else's loan, l see it as a form of savings and l want to leave something for the kids to get a start with when l'm gone, doesn't apply to you now perhaps but may be part of the big picture. Cheers
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RHP User
10 years ago
Broker is a good way to go and I have used one quite a few times. I think buying a home is a great investment if you buy at the right price of course. It has its positives and negatives too, like keeping you in one area. So you cant move if you wanted to for work. Without having to decide on selling or renting out your home which brings another whole set of issues. Good luck which ever way you go
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RHP User
10 years ago
then a unit came up on the market that was too good to miss out on.. Renting vs owning 1. owning is more expensive -you have to pay council fees, water rates that you would not pay when renting 2. renting means that the money you pay goes to the landlord's pocket and you have nothing to show for it 3. owning means that the money you pay goes to the bank's pocket and eventually you will have something to show for it 4. renting means you are not allowed put up a picture on the wall 5. owning means you are allowed to decorate your walls 6. renting means that the landlord can evict you even when you are doing everything by the law (they sell the house, they put the rent up at rent review etc) 7. owning means that you are responsible for the upkeep of the property - have to invest money to change the carpet etc..whereas when you are renting the landlord will pay for those.. but owning means that you have a property to your name. If you are smart and don't go overboard with your mortgage and can contribute extra to your mortgage prepayment (as little as 10AUD per week can make a difference over 10years! let alone 30!) then you will own your property outright faster and you might have a little equity as well. Other than this - get a lawyer and a broker!
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RHP User
10 years ago
I hated renting because of rent inspections (however my house was always clean !!)and because it was unstable , never knowing how long I would have there. I loved renting because I had money in the bank, and if I wanted to move I could just up and move I hate owning my own house as I have no money , I have rates , my house needs work ( no money) and I can't just up and leave. I love owning my own house as it was an achievement , it's an investment.... Think I'm selling
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RHP User
10 years ago
...that renting is wise financial sense if you are doing something else with the money you are saving. That is, the difference between what you pay in rent each week/month/whatever and what could be a mortgage payment for the same period.It could be invested, used to finance further education or anything that aids your financial interests, I suppose. I have a small mortgage again these days for the simple reason that I had a house full of belongings after my last home/relationship...and the cost of rent plus storage was the same as my current repayments. Simple maths and a no brainer there.My advice? Just live within your means. If you don't plan on retiring there, you don't need a big, flashy house for now.
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RHP User
10 years ago
If you're on a good income, and I'm talking from my married past experience with this, single entirely different, but firstly I agree with most above comments, owning usually always costs more BUT you have the security of knowing you're not going to have to move, as said above, paint the walls pink with polka dots, it's yours to do whatever with and a forced way of saving, how much of the income gets wasted just because it's there, all of that. From the sums we did at various times over the years, renting would have been a better option (we never did rent), investing excess income into an investment property that you don't live in. The down side however, for me at least, and with children in tow, was that it's not yours, you might have to move at short notice and worse, not be able to find another place close to your children's school or for the same price, so you might end up moving further away to find a cheaper place. Huge upheaval even for a couple, let alone for a family. So that always worried me. Having said that, when those big crashes come around, you want to have your money in real estate, shares can do you in big time. Whatever you decide, I guess it's all about using your income to it's max, so if renting, send the excess off to another investment. At the end of the day, money won't make you happy, but it will give you that buffer/security for your future
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RHP User
10 years ago
and yes, a good mortgage broker is vital
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RHP User
10 years ago
Get adopted Move to a village .... Life is never easy - Posted from rhpmobile
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sweet_cherry69
10 years ago
Don't go to a bank - go to a broker. I have a vast network of people who might be able to assist you. Message me if you want some info ! Cheers Rach 🍒
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RHP User
10 years ago
Most of the previous comments address the issues. It depends on your goals in life. You may choose to buy, rent it out and travel. You may may rent and travel or buy and live in it and still be able to travel. ( think I need a holiday........travel came up a few times!) As someone who currently does both....complicated....my reasons revolve around my son's schooling. It works for me. You need to decide your own financial goals, wants and desires. Then see a financial advisor. Would defiantly recommend a broker rather than a bank but make sure they are independent and ask about their commission. Happy shopping.
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madotara69
10 years ago
Party hard, you can't take it with you and everyone else will just fight over it anyhow, it ain't natural, live and love brother Mado Mado Tara xx
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